Adex Mining
The North Zone is situated in the northwestern part of the Mount Pleasant property (see inset map on Geology page). It hosts ten subzones containing significant resources of zinc, indium and tin. The most economically important of these are the Deep Tin, Upper Deep Tin, and # 4 Tin Lode subzones. The North Zone also hosts the North W–Mo subzone, an anomalous area of metal concentration with noteworthy quantities of tungsten and molybdenum.

Resource Estimate. The following tables show the latest estimate of mineral resources in the North Zone. These figures have been prepared from the 2012 study on behalf of Watts, Griffis and McOuat Limited, Consulting Geologists and Engineers of Toronto (WGM) and are compliant with National Instrument 43-101, Standards of Disclosure for Mineral Projects. See news release dated March 1, 2012 for more information.

February 2012 Mineral Resources – North Zone, Mount Pleasant Property

Mineral Resources Class

(Millions of tonnes)

Sn Grade, Cut

Zn Grade,

In Grade, Cut











Note: Reported at a cutoff of 0.41% Sn equivalent

Contained Metal, North Zone Mount Pleasant Property (Capped*)

Mineral Resources Class

Contained Sn

Contained Zn

Contained In









Development Programs. Adex engaged SGS Lakefield to perform bench scale performance, locked cycle testing and pilot plant operations to produce tin concentrate and zinc-indium concentrates. More than 60 tonnes of North Zone resource material over a 120 hour period were reported. A zinc/indium concentrate grading 48.2% zinc and assaying 5,310 parts per million (ppm) indium with 95.6% zinc and 91.7% indium recovery was produced in locked cycle test work completed in early 2011.

During late 2010 and early 2011, Adex completed a pilot program to advance the development of its hydromet process for the production of indium sponge metal and zinc metal.  This hydrometallurgical test work, developed by Thibault and Associates Inc. in Fredericton, New Brunswick, resulted in for the production of indium sponge metal grading 96.25% indium and zinc metal grading 98.89% zinc. Adex is considering patent applications with respect to certain aspects of this hydromet process technology.

Adex also engaged Xstrata Process Support of Sudbury, Ontario, in 2011 to develop pyrometallurgical flowsheets for the production of tin metal from tin concentrate. Adex anticipates tin metal assaying higher than 95% tin from the initial flowsheet. The company believes that the potential production of tin metal, as a final saleable product, could have a significant impact on the economics of a mining operation at the North Zone. Final test results are pending.

The North Zone testing that was completed to date has given Adex good direction in how to handle the metallurgy of that resource, but further testing is required.

Recent Developments. Adex has contracted with several consulting and engineering companies to provide services and studies to complete its prefeasibility study (PFS) and environmental permitting approval for both the North Zone and the Fire Tower Zone. The value of contracts signed to date is approximately CDN$1.7 million of which $1.7 million has been incurred by September 30, 2014. Samuel Engineering Inc. is the lead engineering firm and project manager for the study. Golder Associates Ltd. is completing the mining plan and tailings study while Dillon Consulting Ltd. is conducting water-related environmental and permitting studies applicable to the PFS and working on the EIA project statement. WGM is completing updated resource estimations and Bomenco Inc. is managing the metallurgical testing program in support of the mining plan.

The preparation of the prefeasibility study is proceeding with a target daily mining capacity of 2,900 tonnes per day and a mine life of not less than ten years. It is anticipated that it will be completed in the second quarter of 2015. The Company is also in discussions with several China based smelting companies to process the tungsten, molybdenum, tin and zinc-indium concentrates which might be produced at Mount Pleasant. The purpose of these discussions is to provide payables or contract processing rates for the above metals to the PFS contractors to be inputted into the report.